Rabu, 28 Januari 2009

Swiftlet birds House is ASSET?

Many peoples think that swiftlet birds house is asset and can generate cash for them. May be yes may be no.The birds house as asset if the BH can produce bird nests more than what we spend. If your BH can not produce nests and the income less than your expenses, your BH is liability.

Three years ago, my friend's BH already have +/- 200 nests and he not daring to harvest it. Every time he said that his expenses for BH Rp. 1.500.000.- per month and his BH until now not generate cash yet.

I said to him that his BH can be as Asset, if he want. You must harvest the BN. He said that he not daring to harvest it and not much money can get because many birds built their nest in fake nests or imitation nests. Also, if not harvest, the total nests will be double in 1 year. So, 1 year later the total nests will become 400 nests, within 3 years the total nest will be 1,200 nests. Woww... very very good...But I told him that if that is happen is good, but if not happen how? We must think economically. If you harvest every 4 months, let say you get 100 nests (900 grams)and assuming the price Rp. 10,000,000.- per kg, you will get Rp. 9,000,0000.- every 4 months, or Rp. 2,250,000.- per month. With this income you can cover your BH expenses and you no need to spend money from your own pocket. I joke with him, Ask your birds to make money for you, they must pay rent to you. Every month you spend Rp. 1.500.000,- for electricity, insecticide, tukang jaga, transportation, etc. And now, your BH already have nests but you are not daring to harvest, so your BH become liability. Your BH now become your liability if it is not produce birds nests or you are not daring to harvest the nests. In this case, the BH is your Liability instead of ASSET.

My Singaporean friend is more smarter. He bought the 3 storey shoplot in Johor Baru. He bought this shoplot and financing by bank. 1st floor he rented to people for shop. From rent income he can pay the bank loan installment.2nd and 3rd floor he converted to birds house. Eventhought his BH not produce the nests yet or still empty, his BH is an ASSET because he is not spend money for his BH / shoplot.

So, BH will become your Liability if your BH is not make or producing money and will become ASSET once your income from BH is higher than your BH exenpeses. SMART WORK and HARD WORK.